What is RevPar? Profitability of tourist housing

What is RevPar? Profitability of tourist housing

You may not be familiar with the concept of RevPar, but if you want to invest in rental real estate, it is an aspect that you should take into account.

We must understand real estate investment as a business, thinking that our profitability will depend mainly on the income we obtain from short-term rentals, especially if we are talking about very touristic areas such as Punta Cana, where the income can be much higher than renting the property at a fixed monthly rate.

In this article we will tell you what RevPar is and how you can calculate the profitability of your tourist property in order to make a good decision as real estate investor in the Dominican Republic.

What is RevPar (Revenue Per Available Room)?

The RevPAR (Revenue Per Available Room) is one of the key indicators in hotel management. But it is also widely used by investors and owners of tourist accommodations, since it allows measuring the capacity of an establishment to generate income from the number of available units.

It is very important to bear in mind that not everything depends on the price at which you rent the rooms or units in a condominium, but also the level of occupancy you will have throughout the year. There are days when they will be empty and others when there will be guests. You need to maximize the efficiency in the level of occupancies to obtain the desired level of profitability in your apartment.

How is RevPAR calculated?

Calculating RevPAR is a very simple process. It is a matter of dividing the total revenue per rooms or apartments you have available and the total number of rooms in that period.

Another way to calculate it is to multiply your average daily rate (also sometimes called ADR, for Average Daily Rate) by the percentage of occupancy over a period of time.

Example of RevPAR calculation in tourist accommodations

Following this last formula, let's see an example of how RevPAR is calculated. Suppose you have 5 apartments in Punta Cana. Each apartment has an average nightly rate of $120 USD and you had an average of 20 occupancies in relation to the 31 days of the month.

Thus, we first obtain that the average occupancy of your apartments is 64.5% (20/31). Then we apply the RevPar formula (ADR per average nightly rate), so we get that your RevPar has been $77.40 USD.

This means that each day a unit was available, on average it generated $77.40 of income, even if not all nights were occupied. This is a useful indicator to compare the profitability of your rentals with other similar accommodations or with past seasons.

Increasing your RevPar is beneficial for you because you increase your profitability without having to acquire more properties, while a decrease in RevPar would mean that you are earning less because your apartment is empty most of the time.

What factors influence the RevPAR of a tourist accommodation?

There are different elements that can influence RevPAR improvement to increase your profitability.

1. Set an appropriate price per night

If you need your tourist apartment to be rented at a price adequate to the demand, so that you do not lose money, nor put at risk the occupancy by too high rates.

2. Delegate property management to a hotel brand.

Promotions and marketing have a big influence on the number of occupied nights you get each month. Many owners do not have time to dedicate to sales, so a good idea may be to invest in properties managed by a hotel brand. At Vivantia Homes you can find real estate opportunities that operate under this model.

3. Consider the location and attractiveness of the property

You are not going to have the same number of reservations if your apartment is close to the beach as if you have it hidden in the interior of the Dominican Republic, and with bad access.

The amenities and quality of the property are also another factor that will considerably influence the price per night that you will be able to charge and the demand that you will obtain.

4. Avoid platforms and sales channels with high commissions.

Your real estate profitability can be affected by the sales channels you use. It is much more advisable, as we pointed out before, to delegate marketing and promotion to a hotel brand, which already has its own channel, as opposed to tourist accommodation booking platforms, whose commissions can greatly reduce your income.

Find out how to calculate the profitability of an investment property in Dominican Republic. Book your video call with us.

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Risk mitigation in real estate investments

Risk mitigation in real estate investments

Every real estate investment involves a certain degree of risk. Those who invest without experience or knowledge of the market may end up suffering the worst consequences. There are ways to reduce the chances of losing money or even maximize our profits when buying an apartment.

 

If you enter a foreign market, such as the Dominican Republic, the disadvantages may be less than in many countries. We are talking about a scenario with a buoyant tourism, a stable growth of real estate valuation and a great legal security compared to Spain and other countries in Latin America.

 

However, let us show you some strategies so that you can mitigate the risks in your real estate investments and increase your chances of success.

What are the risks involved in a real estate investment?

Risks in real estate investments are often associated with bad decisions. For example:

 

● Buying a property and renting it to a squatter, and taking about 3 years to get your property back, as happens to more than one owner in Spain.

● Buying an apartment and selling it for less money: this can happen in countries where there is a strong bubble and the property is bought at a bad time, as opposed to more stable markets that are less sensitive to changes in the market, such as luxury apartments in Punta Cana.

● Buying a property, without having full proof that it has no encumbrances or mortgages, or ensuring that the owner is who he claims to be and that the property is duly registered.

 

These are, in any case, the most visibly negative situations that an owner can face. When we talk about risks, however, we should not only look at whether we make or lose money, but also at how much money we miss out on because we did not make a good decision.

Tips to mitigate risks when buying an apartment in the Dominican Republic

At Vivantia Homes we want you to make your decisions with confidence and knowing exactly what you are doing. Now that you know what the risks are, let's see what our recommendations are to maximize your benefits and mitigate possible risks.

1. Invest in real estate markets with high legal certainty, such as the Dominican Republic.

If you do not want legal problems with your property, invest in a market with high legal security, where the owners are protected and there is no squatting phenomenon that could jeopardize your profitability. Previously we have already talked to you about the problem of squatting in Spain vs. other countries.

In this way, you could legally recover your property the moment a tenant does not pay, or if someone accesses your property without being the owner or having permission to do so.

2. Rent on a short-term basis and reduce unforeseen expenses.

Long-term rentals can involve huge expenses when tenants move out. Yes, you may be able to keep the deposit, but you may still need to do some renovations, as furniture deteriorates over time, and even more so when there is one or more people living there permanently.

Renting your apartment to tourists allows you to have more control, since after each person leaves, you can do a cleaning and control that everything is kept in perfect conditions.

3. Delegate property management to a hotel brand.

Do you want to avoid economic risks due to the variability of prices in the real estate market? Do you want to avoid having to manage the rents and the maintenance of the property yourself? In addition to short-term rentals, you should opt for apartments that are directly managed by a hotel brand.

Property management involves many advantages. Apartments located in condominiums and managed by a recognized hotel take care of everything necessary: welcoming guests, attending to their demands during the trip, cleaning and maintaining the property in perfect condition, and looking for new clients to increase the booking rate.

4. Purchase in areas that benefit from the Confotur Law.

If you are going to invest in real estate in the Dominican Republic, it is best to purchase your apartment directly in condominiums that benefit from Law 159-01. This regulation allows you to enjoy some tax exemptions, which greatly reduces the taxes you have to pay during the first 15 years.

There are those who buy apartments in remote areas of Punta Cana, far from the beach, because they see that it is a good price, or a lot of land space, but this does not necessarily guarantee excellent results in rents, or revaluation.

5. Diversify your real estate portfolio

Several apartments are better than one. They allow you to scale profits when there is a high demand for short-term rentals. And they also help you even out your income when one of the properties is not getting the desired booking rate, so you can offset the results. Diversification can be a good way to maximize your profits.

At Vivantia Homes we have selected the safest and most reliable real estate opportunities in the market. We want you to feel confident about investing in the Dominican market and have all the information you need to make your way in this attractive investment scenario. Talk to us for more details.

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Why buy an apartment abroad?

Why buy an apartment abroad?

Maybe you are a real estate investor and you are looking for new ways to expand your investment strategy. You don't want to limit yourself to a single market, but want to explore emerging cities where high returns can still be found.

Often, real estate investors who do not have international experience find that one of the risks to buying an apartment abroad is the lack of knowledge of the language, the lack of legal certainty and, of course, those doubts and uncertainty that can arise when we are looking for new opportunities.

Let us show you some reasons why, despite all this, it is worth buying a home abroad if you choose excellent locations, such as the Dominican Republic, a country with which you share language, has a large influx of tourists and is the main center of interest in the Caribbean for real estate investments in the Spanish-speaking world.

Reasons to buy an apartment abroad

There are multiple reasons why as an investor you should not be afraid to expand your investments to other markets. The sooner you do it, in fact, the better to diversify your income and avoid the risks of being subject to a single real estate market, which may have serious structural problems that prevent you from growing.

 

Tax savings

Don't just look at the price of the property, the size, or the publication. Look at the taxes, which can substantially increase the cost of your investment. When real estate taxes are high, we indirectly think that the price of the house is more expensive, but in reality the payment of taxes does not represent any benefit for the investor.

There are real estate markets abroad that would allow you to execute the same type of operation, paying much less tax, or even an exemption for 15 years, if the property meets certain characteristics, as is the case of the Dominican Republic with the Confotur Law.

2. You need to diversify your real estate portfolio.

Owning real estate in a single country subjects you to the legal vagaries and unique characteristics of the real estate market. If that scenario is also prone to increased regulations on the rental market, or taxes are frequently increased, the lack of predictability puts your long-term investments at risk.

Lack of fun can be a problem if you find yourself in a market with a lack of legal certainty. Different situations may arise that lead you to see your profitability diminished and not achieve the objectives you had planned at the beginning.

3. You wish to have a second residence abroad

Perhaps you are buying an apartment abroad because you would like to have a second home. You want to buy an apartment as a second home, which is in a vacation location, where you can retreat to rest, but still provide you with certain amenities, and is relatively close to other places you might travel to.

Dominican Republic is the perfect place for investors of this profile, where you can also easily obtain residency by investment. Not only because it is a short flight away from the USA and Latin America, but also because it is a country that receives more than 11 million tourists a year, and has excellent beaches to enjoy an excellent experience.

4. You don't want to assume the opportunity costs of investing in a single market.

If the market in which you have invested in housing is expensive, or presents serious difficulties in accessing properties at an attractive price, you are assuming opportunity costs that you may not be aware of. Because the same amount you invest in a property in the United States or Spain would give you access to apartments of much higher quality, with more affordable prices, and a greater potential for long-term profitability.

This would allow you to grow faster and see results sooner, as you would enter the luxury apartment market, a much more stable type of investment in the long term, whereas the other way can often be more difficult to find buyers, or you may find yourself in distressed situations if a real estate crisis occurs.

Dominican Republic, the ideal destination for real estate investments abroad

Thinking of buying your first home abroad? Whether you are a professional investor, or simply want to enjoy a home of your own in the Caribbean, the Dominican market represents just what you might be looking for right now.

A Spanish-speaking market, with legal security and a continuous flow of tourists throughout the year thanks to its warm climate, which can be a perfect option for tourist rentals. We are talking about a market where you can find apartments with temporary tax exemption, in the heart of Punta Cana, and with yields that can exceed 10 or even 15% per year.

Would you like to receive more information? Are you an investor looking for opportunities abroad? Talk to us here.

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How to choose a profitable apartment for investment in Punta Cana

How to choose a profitable apartment for investment in Punta Cana

As a real estate investor, many times you may be tempted to buy a property because you like its location or its design. Or perhaps because, without knowing the city's real estate market well, you decide to take some risks, based mainly on what you see or have been able to study.

 

But choosing a profitable apartment for investment in Punta Cana requires taking into account different factors. Not everyone invests with the same objectives, nor does everyone have the same investment profile (discover here our real estate opportunities in Dominican Republic).

 

Whatever your objective is when buying an apartment for investment, it is important that you take into account some metrics and indicators that will help you make the best decision.

What to take into account when measuring the profitability of an apartment?

When we talk about the profitability of an apartment, we must be clear about what we are referring to.

If you are looking for properties to invest in Punta Cana, you may be thinking about the ROI or return on the real estate investment of the purchase-sale. You are interested in the revaluation of the property, and obtaining a margin or capital gain from its sale one or two years later.

Or maybe you are thinking about tourist rentals, so that the net income you get from short-term rentals will allow you to cover the full cost of the apartment and generate profit.

In many cases, in order not to wait too many years, investors look for a hybrid formula: rent for a few years and sell later when the apartment has appreciated at least 10% per year.

Metrics and indicators to buy a profitable apartment in Punta Cana

Seen from this perspective, there are several indicators and metrics that you should take into account when investing in apartments in Punta Cana.

A developer or promoter who knows the market can inform you about the profitability of each property, although having the advice of a real estate lawyer and an economic advisor can help you solve all your doubts.

In any case, these are some of the indicators you should look for when investing in an apartment.

Cap rate (capitalization rate)

This metric measures the profitability of a property with respect to its market value, without considering financing costs.

Thus, for example, it can be calculated by a simple formula:

(Net sales transaction revenue / Purchase Price) × 100.

At the moment of buying an apartment in Punta Cana, you may not know the real net income that the apartment will produce. However, you can make an estimate, considering the growth rate of real estate prices in recent years, which would allow you to establish a range in which your profits will be found.

Some real estate investors also consider the return on equity invested, in case of applying for a mortgage, using the following formula:

Cash-on-Cash = (Annual Cash Flow / Equity Capital Contributed) × 100

Metrics to determine the profitability of real estate rentals in Punta Cana

If you are going to buy an apartment and then wish to rent the property, the first thing to do is to find out the fixed costs involved in the maintenance of the property.

In many cases, property management is carried out by a hotel brand, which includes all maintenance costs, and is a figure that allows you to easily find out the net yield of your rentals and determine prices.

It is also essential to know the taxes you will have to pay, even though with the Confotur Law you may be exempt.

Whatever your case may be, rental yields may vary, depending on whether they are short or long term rentals. Long-term rentals have a fixed price per month, so you know in advance how much you will earn if you sign a contract. On the other hand, in short-term rentals you must take into account different variables. For example:

● Occupancy rate: percentage of nights rented during the year.

● ADR (Average Daily Rate): average daily rate per night that you usually charge.

● Overnight rate: average number of nights each customer stays.

Lead time: time elapsed between booking and guest arrival, or level of anticipation of the booking. This indicator is not really a problem for availability, but it does show you the risk and predictability of bookings.

As you can see, determining the actual profitability of a vacation rental requires taking into account operational metrics, and is somewhat more complex to determine.

However, if you buy real estate in condominiums, small units located in apartments with all types of amenities, Generally, these indicators can be easily determined so that you can know what price to charge for rent, what your maintenance costs will be and what profitability you will obtain during the year.

These benefits in a tourist environment like Punta Cana are considerably higher than in long-term rentals, and can help to cover the cost of buying the apartment in less time, and thus maximize the benefits of your investment, whether you decide to keep it or sell it after a few years after its revaluation.

Would you like to discover tourist apartments in Punta Cana that offer predictable results for a profitable real estate investment? At Vivantia Homes we would like you to get to know our market opportunities in detail. Book a video call with us.

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Where to invest in countries with better legal security than Spain? 

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Where to invest in countries with better legal security than Spain?

When you are a real estate investor, it makes sense to look for a market environment in which there is a high degree of legal certainty and a good protection of property. 

 Unfortunately, the spanish real estate market presents different dysfunctions that are detrimental to homeowners, both those who buy with the intention of selling at a revalued price, and those who have a housing market with short or long term rentals. 

Low legal certainty entails risks for investors: you may have to rent at a lower price than you expected because of the regulations in stressed areas, The process for evicting tenants who are considered vulnerable can be long, or someone squatting in vacant housing can take years to recover it.  

In this sense, in this post we are going to show you some of the following investment options more recommendable than Spain if you are looking for maximum protection. 

Where to invest in housing beyond Spain?

To make the decision to stop buying homes in Spain and to look for a new home. other real estate markets is very attractive. Many investors are considering getting rid of their homes and even taking up residence in a market with fewer regulations and lower taxes. 

 When we look for the best places to invest in housing, the same places almost always come to mind: United States, Europe, Asia or Latin America. Here is one list of countries with better legal certainty than Spain for investments.  

The problem of investing in housing in the United States is that housing prices are considerably higher than in Spain, so you need a much higher initial capital. Although the legal security against evictions and evictions is high, the initial costs are high.  

As far as the Asian market is concerned, there are two main handicapsThe lack of legal certainty regarding real estate and the strong regulations for foreigners. In some countries such as Thailand, Indonesia or the Philippines, foreign nationals are not allowed to own the land where the houses are located, it is only possible to buy condominiums or work with long-term leases under certain conditions, depending on the country. 

The same can occur in the European market, especially in some heavily congested cities in the UK, France and Germany, where there are also greater regulations. 

In the latin american real estate market, Although housing prices are very affordable, the biggest problem has to do with legal certainty.  

Many legal systems do not provide sufficient guarantee of property protection, There is an increased risk of expropriation of housing by the state, or there is a market for the sale and purchase of housing that is not properly registered in a land registry. 

However, although the Latin American market still presents numerous challenges, a different issue is some Caribbean countries, The Dominican Republic, for example, offers a perfect combination of affordable housing prices, high revaluations and a sufficient level of regulation and property protection to be able to operate with guarantees in this market. 

Legal security in the Dominican Republic, the real estate market where more and more Spaniards are investing

The first thing you should be clear about is that as a foreign real estate investor you have many advantages. No nationality restrictions for foreigners to buy property, as is the case in many Asian countries. 

On the other hand, there is a Registration of Titles where the properties are registered at the moment of the purchase of the property. Therefore, for legal purposes it is correctly reflected that you are the owner of the apartment that you have acquired from the moment of the purchase. 

 The evictions for nonpayment of rent or evictions of squatters The property owners are fully protected, without having to be involved in long and complex legal proceedings, which can last for years, as is the case in the Spanish real estate market. Previously we have already told you about the squatting problem in Spain compared to other countries. 

There are also no problems when it comes to inherit properties, even if you are a foreigner; the homes you own will pass to your heirs. This is an outright purchase, not long-term or lifetime leases. 

There are also incentives for the acquisition of apartments in tourist areas, thanks to the Confotur Law, The foreigners can benefit from this program. For 15 years you would not have to pay taxes on the income obtained. for your rental properties, as long as they are located in the tourist areas included in the regulation. You would also be exempt from the Real Estate Wealth Tax for a period of 15 years. 

From this perspective, buy properties in Dominican Republic is the best alternative to Spain for investing in housing.  

 In Vivantia we have apartments in fully equipped condominiums, which are covered by the benefits of the Confotur Law, and allow you to achieve returns of more than 10-15% per year. If you are a real estate investor in Spain and you are interested in entering this market, we invite you to talk to us now. 

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The problem of squatting in Spain vs. other countries 

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What happens in other countries with better legal certainty?

One of the risks faced by the real estate investors in Spain is the problem of occupancy.  

Having one or more vacant homes significantly increases the risk that they will end up being occupied. But renting them also involves a certain risk, since there are people who rent a property and pay the first installments, but then stop doing so and refuse to leave the property. 

This ends up leading many owners to find themselves immersed in long and tedious legal proceedings to be able to recover their home, and all while the “squatter” continues to consume resources or even deteriorate the property. 

The situation is different in other countries, where the evictions and evictions are executed quickly and owners have greater legal protection. 

For what reasons has squatting become a problem in Spain?

Occupancy in Spain is a problem due to the lack of legal certainty for owners. 

Police can only evict occupants if they are discovered within the first 48 hours 

The Spanish legislation protects homeowners against trespassing when they are residing in a dwelling. But if the property is vacant, authorities can only evict the occupants if they are caught in “flagrante delicto,” which is considered to be about 48 hours after the squatters have entered. 

If this time limit is exceeded, the police already have to apply for a court order and the process can take a long time. In this sense, the problem can be greatly aggravated for the owner, with a slow and costly judicial process that can last for years. 

 

The Housing Law is detrimental to homeowners 

Another of the problems associated with occupancy that clearly disadvantages the landlord is the possibility that a tenant, with lease agreement, is declared to be in a situation of vulnerability, and a court temporarily suspends the eviction until a new home can be found for him or her. housing alternative. 

This can keep your home held up for several months, although the biggest risk is that the tenant becomes squatter, If you do not want to give up your home, stop paying rent and do not want to give up your home. 

 

Strong regulations on vacant housing 

Another problem has to do with the use of vacant housing, If it is not used or rented for more than two years, it may be subject to penalties.  

Although this does not affect second homes or those being renovated, it is still a problem for large holders in the current context.  

What happens in other countries with better legal certainty?

The difference between the judicial processes of eviction of squatters in Spain compared to other countries is very large. 

Spain 

In Spain, the real estate legislation greatly protects the tenant, but leaves landlords in a situation of defenselessness in many cases. A law was recently passed to streamline judicial processes, so that evictions from squatted properties can be handled by speedy trial, but these modifications only affect those who have occupied vacant housing, not tenants who have stopped paying rent. 

 

Europa 

If in Spain the eviction takes one year to average of 18 to 20 months, In other European countries such as France or Germany, in just 24/48 hours it can be carried out, with prison sentences for the squatters. In countries such as Italy, the police can be informed and a speedy trial is held and the squatters are immediately evicted. 

 

Dominican Republic  

In the Dominican Republic, the owner protection has been much more effective than in Spain, both for squatters and inquiokupas.  

First of all, the right to property is included in the Constitution, which states in its article 51 that “The State recognizes and guarantees the right to property”. Law 108-05 establishes that real estate must be registered in the Registry of Titles to guarantee the protection of such property rights. 

For its part, the legislation establishes that the illegal occupation of properties in the Dominican Republic is a criminal offense, punishable by fines and imprisonment that may vary if it is considered trespassing, or invasion and occupation. A property owner may report an occupation or violation of his property, and he will be evicted. 

In the Law 108-05, on Real Estate Registry, Article 49, paragraph 1, states that the occupant is given a deadline to leave the dwelling within 15 days, after which the owner may resort to public force to proceed with the eviction. 

If you are real estate investor, The Dominican Republic is an excellent option for buying property, given its excellent legal security and the ease with which foreigners have access to investments, visas and even tax benefits for rental income. 

 Do you want to invest in real estate in Dominican Republic? Discover our real estate opportunities in Punta Cana. 

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Countries with better legal security than Spain for real estate investors 

Countries with better legal security than Spain for real estate investors

A country like Spain may have a high level of legal certainty and a relatively strong rule of law. But that does not mean that there is a strong legal protection for real estate investors.  

In fact, there are many criticisms of the spanish real estate market, It is a hyper-regulated sector, where there is no clear defense of private property against occupation or non-payment by tenants in vulnerable situations. 

 In many cases, the real estate investors in Spain are involved in lengthy and costly legal proceedings to evict those who are squatting illegally. On the other hand, the housing laws themselves impose high restrictions, and in some regions and areas limits are being placed on the price of rent. 

This has led many real estate investors to consider changing their outlook, looking for countries with better legal security than Spain to buy homes. Is that your case? We are going to show you some of the alternatives to Spain to invest in real estate. 

Which are the countries with better legal security than Spain for investing in housing?

There are a number of countries where the legal conditions for investing in housing generate more confidence among investors to invest in housing. buy apartments. 

Dominican Republic 

The Dominican Republic, located on the island of Hispaniola, in the Caribbean Sea, is one of the ideal options for those who are looking for alternatives to the real estate market in Spain. 

The Dominican Constitution (art. 51) expressly protects private property and prohibits expropriation without prior compensation. 

On the other hand, the Real Estate Registry Law The modernization of the title system, with the result that today there are property titles guaranteed by the State and a unified cadastral system. 

 With respect to occupancy, there is no risk of illegal occupation tolerated by the State; Occupations are treated as crimes and evictions are usually quicker than in Spain.  

Foreigners enjoy the same rights as nationals when it comes to investing in housing in the Dominican Republic. And not only that, but they also have the possibility of accessing important tax reductions, thanks to the Confotur Law, with which you can be exempt from Real Estate Property Tax and reside in the Dominican Republic for 15 years without paying taxes on the income from your home. 

 

Panama 

Another of the economic spaces that are attracting the attention of the investors is Panama. 

In this country there is strong constitutional protection of private property, foreign investors have equal rights and freedom to repatriate capital. 

On the other hand, there is a public housing registry very efficient, with property titles guaranteed by the state. There is also no problem of tolerated squatting, as is the case in Spain. 

In addition, the Panama's tax framework is very attractive for investors, who can access low real estate taxes and important incentives in special zones. 

 

Costa Rica 

 It is another of the countries that is attracting the attention of numerous real estate investors. Here, expropriation is only allowed for public utility and with prior compensation. 

For its part, there is a system of transparent housing register, based on the notarized public deed. 

Foreigners are entitled to the same rights as Costa Ricans when it comes to acquiring property on the country's soil. There is not much regulation regarding residential land use or rental housing, so it can be very attractive for investors. 

 

United States 

Some U.S. states also offer excellent protection for foreign investors. 

Private property is almost sacred in most states in the USA, although each state's legislation differs in the level of regulation. While Florida, Texas, Arizona or Georgia have a strongly pro-landlord legal framework, facilitating the eviction of squatters and defaulters, other states such as California or New York tend to have a more protective legislation towards the tenant. 

The housing registration system is freely accessible and transparent and offers the highest level of legal certainty. 

The only drawback of investing in housing in the United States is the legal costs and the high price of housing in many congested areas. We have previously explained the differences between buying a home in Miami vs. Punta Cana.

 

Mauritius Islands 

Although less known, the Mauritius Islands are a small, investor-friendly country, with a high level of protection and legal security for foreign investors. 

There are official real estate acquisition programs with full ownership for foreigners. 

 In addition, it is a country with a large number of political stability and low taxes for foreigners, no strict rent controls, no arbitrary expropriations. 

The best alternative to invest in real estate outside Spain

The legal certainty is one of the factors that is leading many investors to set their sights abroad. 

The regulatory framework in Spain is not at all favorable to real estate investors and there are more and more regulations affecting real estate holders. 

Due to its legal security and value for money, as well as its strategic position and cultural proximity, the Dominican Republic has become the ideal destination for many investors who can acquire better homes and in better legal conditions at lower prices than in Spain. 

 For more information about opportunities in the Dominican Republic, contact us now.

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Is it worth buying a country house in the Dominican Republic? 

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Is it worth buying a country house in the Dominican Republic?

When you are thinking of investing in the buying a home, One of the questions you often ask yourself is this: what kind of house to buy? A house in an apartment building? A villa? A country house? 

 The decision can be very personal, but we must also take into account our objectives such as real estate investors. Keep in mind that even if you buy a house to live in, if you are not a resident of the Dominican Republic, you will probably rent it when you are not in the country. 

Having a broad vision when buying a house is important. In this post we would like you to know the advantages and disadvantages of buy a country house in Dominican Republic. 

Advantages of buying a country house in Dominican Republic

Purchasing a cottage instead of an apartment home can have some advantages. 

Privacy  

A country house generally means having more privacy, since you are away from the noise of the big cities, so you can enjoy a quiet environment. 

Space 

 Country homes can have multiple acres, which gives you plenty of space available to grow crops, keep animals or enjoy much more flexibility and possibilities to customize your home as you like. 

Less hustle and bustle  

A house in the country is usually synonymous with quality of life. There is less traffic, less hustle and bustle and an environment marked by tranquility and abundant vegetation, which allows you to enjoy a very pleasant experience. 

Price 

Houses in the countryside, depending on their size and characteristics, can be an interesting buying opportunity, especially for those who prefer to sacrifice a good location in exchange for a larger house with land. 

 However, this apparent advantage can also become a disadvantage in the future, as it will take longer to find a buyer than a property located in a tourist area and with a higher yield potential. 

Disadvantages of investing in a country house in the Dominican Republic

There are also some reasons why investing in a country house in the Dominican Republic is not always the best option. 

It is far from urban and tourist areas.

If you have a house in the country, it will generally require have a vehicle to move around in to there. Inland houses, on the other hand, are not as touristy as those near the beach. Earlier we told you about the advantages of buy a house on the beach in Punta Cana. 

It should be noted that if you are thinking about rent your home to tourists During the time you are not in it (or if you buy it as an investment), it is much better if it is well connected to the Punta Cana airport and the main tourist areas. 

More oriented to long-term rental

The country houses are usually designed for those who are going to live in the Dominican Republic for the long term. Although luxury homes can be very lucrative, the big business opportunity in the Dominican Republic is in short-term tourist rentals, where there is the possibility of charging higher prices per night and getting a higher return on rent. 

Fewer services

The remoteness of a country house from the main urban center may result in the existence of less services, The experience will be available to the people who live there and those who live there will have to travel to enjoy it. 

Not everyone who comes to the Dominican Republic is willing to spending too much time on the road for small needs. 

Fewer luxuries and amenities

Many of those who visit the Dominican Republic are more accustomed to being able to living in hotels, condominiums and resorts that already have all the amenities: private beach, coworking area, swimming pool, gym, recreational areas, easy access to the golf course...  

 Having a country house deprives you of that international environment which can only be found in accommodations located in tourist areas. 

Confotur Law

The tax benefits of the Confotur Law only apply to dwellings located in the areas favored by this regulation.  

 This legislation is oriented to the promotion of economic activity and tourism, Therefore, houses located in areas that are not affected by the Confotur Law do not benefit from certain tax advantages, such as the IPI exemption for 15 years. 

We invite you to get to know all the benefits of the Confotur Law and why right now it is much more attractive for a foreigner to buy a home in areas that are covered by this legal standard. 

Remember that the real estate opportunities that you can find in Vivantia Homes are covered by the benefits of the Confotur Law. If you want us to explain how it works and how you can invest in our tourist apartments in Dominican Republic, please contact us, write us now. 

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How much do you need to live comfortably in Punta Cana? 

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How much do you need to live comfortably in Punta Cana?

Many see Punta Cana as the ideal paradise in the Caribbean to live in. Whether to spend your retirement or retirement there, or simply to spend a season as a digital nomad, this city in the Dominican Republic is currently one of the international references among those seeking quality of life and a buoyant economic environment. 

However, you may be asking yourself how much money you need to living comfortably in Punta Cana.  

Although everything ultimately depends on the lifestyle and priorities you have when living in this Dominican city, we are going to show you some aspects that you should know about the cost of living in Punta Cana. 

Is it expensive to live in Punta Cana?

The first thing you need to be clear about is that, although Punta Cana is a tourist city and one of the main points of reference in the Caribbean, is by no means the most expensive city to live in.  

There are other places such as Jamaica, Aruba or the Bahamas which can be significantly more expensive than Punta Cana and the Dominican Republic as a whole, both in terms of housing and day-to-day expenses. 

In addition, you have the advantage of speaking Spanish, which gives you more confidence when it comes to getting around, negotiating prices with cab drivers or local markets. 

This makes the Dominican Republic, and Punta Cana in particular, one of the most important a highly valued destination for settling down, The island is a great place for investors, retirees, and vacationers who want to enjoy its relaxed atmosphere, luxurious resorts, and incredible beaches. 

Cost of living in Punta Cana

As we have said, the cost of living in the Dominican Republic and particularly in Punta Cana is relative, but here you can see some references to have more or less clear what rent you should have. 

Cost of housing

A monthly housing rentals in well-located areas of Punta Cana can cost between $600 and $800, although costs can be significantly higher depending on whether we are talking about luxury homes or villas, where prices can be well over $$3000 per month. 

Rental growth is becoming increasingly important, so many foreigners who come to live in Punta Cana prefer to buy a home. For about the same price or less than what you would spend in the United States, you can buy a luxury home in Dominican Republic at very competitive prices. 

Cost of food

The food costs in Punta Cana are relatively inexpensive, compared to other Caribbean populations, and also compared to the United States.  

A restaurant dinner can range from $15 to $20, which is perfectly affordable for many average salaries; the same can be said for shopping at the supermarket, where we can find all kinds of food at reasonable prices. Filling the shopping basket will not take you more than $400 or $500 USD, although it all depends in the end on how many people reside in your home and the whims of each one. 

Cost of telephone, internet and supplies

The cost of telephone, internet and utilities (electricity, water, etc.). can also be quite variable, However, it is possible to pay around $100 or $120 dollars for a house, living without too many restrictions. 

Cost of transportation

The prices of transportation in Punta Cana can be highly variable. Generally, people travel by private car, cab, public transport or buses. Fares between the airport and hotels are usually regulated, while cab fares vary depending on the route and can range from US$$10 to US$$70 depending on the distance. 

There are also the so-called “conchos”, These can be shared cabs or motorcycle cabs, and can allow you to move around the city easily, and can also be more economical, depending on where you are going. 

How much does it cost to live in Punta Cana?

Depending on the pace of life that each person wants to lead, you will have seen that living in Punta Cana can be relatively inexpensive.  

 Although it is a city more expensive than others in the Dominican Republic and you have to take into account the fact that it is a touristic place, with a good planning it is perfectly possible to live with about $1500-$2000 USD, and keep enough money to do sport, touristic or cultural activities during all the time you are living there. 

At Vivantia, we want to emphasize the importance of being able to owning your own home as a way of saving costs and be able to establish yourself in the country in the long term. Keep in mind that, in addition, with the houses that benefit from the Confotur Law you do not have to pay the Real Estate Property Tax (IPI) for 15 years. Find out how much cost of an apartment in Dominican Republic. 

Discover our real estate opportunities y buy your luxury home in Punta Cana at a much lower price than in your home country. 

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Residence for real estate investment in the Dominican Republic

Residence for real estate investment in the Dominican Republic

There are different ways of obtaining residency in the Dominican Republic. One of them is the residence by investment, which is obtained by means of a investor visa.

You can make different types of investments, You do not have to be a stock market expert to access this type of market.

An upper-middle income person in the United States, with sufficient savings for buy a house in Dominican Republic for a value of $200,000, is enough for you to obtain residency in the Caribbean country in the short space of 45 days.

In this post we will show you the types of investments that you can make in order to be able to to obtain residency in the Dominican Republic.

Types of investments valid for obtaining residency in the Dominican Republic

Do you want to obtain residency in the Dominican Republic? There are different types of investments that can be made.

Real estate investment

The real estate investment is the easiest way to invest in the Dominican Republic to obtain residency. This can be more or less passive, since the mere fact of investing entitles you to apply for residency by investment, without necessarily having to rent the property.

The buying property in Dominican Republic is a more or less semi-passive business, since you can rent it and receive benefits month by month. There are even ways that you don't have to take care of the management, if for example you acquire a unit in a condominium managed by a hotel brand, which takes care of everything from marketing to maintenance.

Investment in local businesses

Another possibility is invest in a local business. It is to create a new company or to participate in an already created company. To do so, you must register with the Dominican Republic's Export and Investment Center.

This would allow you to apply to the residence for business investment, This also leaves the door open for you to make a purchase or acquisition of a home in the Dominican Republic in order to manage or run your new business.

3. Financial investments

Here you should take very serious advice, since not all financial investments allow you to apply for residency by investment in the Dominican Republic. Investing US$200,000 in Dominican government bonds can be valid, but there are other formulas that will not automatically give you the right to apply for residency by investment.

You should keep in mind that they must be investments made from within the country, and the investment must be registered with ProDominicana as a foreign investment. Transactions with cryptocurrencies are also not accepted as a registrable financial investment.

What are the advantages of obtaining residency for real estate investment in the Dominican Republic?

Obtaining residency by investment is much quicker and easier for those who have sufficient capital than by other methods.

This is carried out at the General Directorate of Migration of the Dominican Republic, and is usually granted in a very short period of time.

1. Buying a home in the Dominican Republic is more affordable than in the U.S.

Making a real estate investment for $200,000 is a relatively affordable amount for people with good salaries in the United States. Perhaps you are looking for a way to make the most of your savings, but you know that the effort to buy a property in the current circumstances in the U.S. market can be high.

For a much lower cost, you can have access to luxury homes in the middle of the Caribbean, in a country like the Dominican Republic where there is an enormous growth in tourism, and which is increasing in value year after year.

 

2. It is a scalable business and easy to delegate.

Unlike what would happen if you decide to create a business in the Dominican Republic and make that investment, buying a real estate property is much more scalable and easier to delegate.

You can buy properties managed by a hotel brand, and they take care of everything, so that even if you have the residence, you don't have to manage the reservations or carry all the paperwork involved in managing a property.

 

3. It is a stable and long-term investment.

When making an investment in the Dominican Republic, you must prioritize your interests, as is logical. Evaluate what is the most profitable for you at this time, according to your objectives, and not only in obtaining the visa.

$200,000 is a considerable amount, so you should seriously evaluate to which assets you are willing to dedicate such amount. It is not about creating a business, with employees and duly registered, or making financial investments in a different country, just for the purpose of obtaining residency, as this is something that should be valued for its own profitability or the interest you may have.

However, if you want a residency visa in the Dominican Republic, it is generally because you want to live there, and in this sense, buying a home is the easiest way to access. Once you have the residency, you can focus on other investments, create a business or continue investing in real estate.

From Vivantia Homes we want to pave the way for you, simply by showing you the real estate opportunities that you can access through us, and that would allow you to apply for investment residency. Do you want more details? Book a video call with us.

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